Samsung’s decision to relocate its U.S. corporate headquarters in Englewood Cliffs to Texas by the end of the year underscores New Jersey’s difficult tax and regulatory climate and serves as a clarion call for lawmakers and policymakers to change anti-business policies.
NJBIA President & CEO Michele Siekerka called Samsung’s departure “not surprising, but no less sad.” She pointed to New Jersey’s 11.5% corporate business tax rate – the nation’s highest – and noted the number of Fortune 500 companies headquartered in the Garden State has steadily declined from 22 in 2018 to 15 in 2025.
Samsung’s relocation decision in 2026 comes less than a week after ExxonMobil shareholders voted to make Texas their official corporate home, ending the company’s 144-year legal incorporation in New Jersey that dates to its 1882 origin as Standard Oil of New Jersey.
“These are not accidents, nor are they coincidences,” Siekerka said in a statement late Thursday after South Korean media first reported the news. “However, this is also an opportunity. Governor Sherrill has signaled the need and want to improve our business climate, to reduce costs, red tape and other permitting and regulatory burdens.”
Samsung’s move to Texas, a state with a reputation for pro-business tax and regulatory policies, affects 1,000 employees in the Englewood Cliffs corporate office, which opened less than nine months ago. Texas has no traditional corporate income tax, and Samsung has already made billions of dollars in manufacturing investments in the Lone Star State.
In 2024, Samsung’s semiconductor manufacturing site in Austin and ongoing construction of a new $17 billion semiconductor foundry in Taylor, Texas, injected $19.8 billion into the local Texas economy, according to Samsung’s website. The Taylor foundry is set to open later this year and will make advanced logic semiconductors for AI, automotive systems and other uses.
Samsung notified New Jersey employees on May 29 of its decision to move to its corporate headquarters to its existing mobile and network business campus in Plano, Texas campus, but it is unclear how many New Jersey jobs are being relocated and how many will be eliminated.
Siekerka said New Jersey should heed the loss of large job creators like Samsung and stop pursuing damaging anti-business policies, such as the proposed Climate Superfund Act and the independent contractor rule. She called for state leaders to embrace policies like the sunset of the 2.5% Corporate Transit Fee and the re-evaluation of the DEP’s controversial land use rules.
“By not taking prudent steps, New Jersey runs the risk of losing more of our job creators,” Siekerka said.
Assemblyman John V. Azzariti Jr. (R-39) also issued a statement Thursday noting Samsung joins a growing list of major companies that have moved headquarters or significant corporate operations out of New Jersey in recent years. The Legislature should focus on reducing taxes, controlling energy costs, reforming regulations, and making New Jersey more competitive with states that are attracting businesses and workers, he said.
“Every time a major employer leaves, New Jersey loses jobs, economic activity, charitable investment and prestige,” Azzariti said. “The question is how many more companies have to leave before Trenton starts asking why."
Photo caption: Samsung’s massive semiconductor manufacturing site undergoing construction in 2024 in Taylor, Texas. The fab is scheduled to open later this year. Image credit: steheap - stock.adobe.com.
